How will the Uber Ruling affect you as a Self Employed worker?
In a decision made last week, two Uber drivers won the right to be classed as “workers” rather than self employed contractors.
The case was brought to trial by The GMB Union, who stated that these drivers and thousands of other flexible workers have been caught in the “bogus self employment trap.”
The courts determined that Uber have acted unlawfully by not providing drivers with basic workers’ rights, such as national minimum wage and statutory entitlements including sick pay and maternity/paternity pay.
The scale of this decision has in turn posed a threat to the third of the UK’s population that classify themselves as self employed workers, as it could clamp down on those workers allowed to operate as truly self employed and the advantages they are entitled to by operating in this manner.
What does it mean to be self employed?
When working as self employed, there are certain considerations to take into account;
Advantages of being self employed:
Flexibility – Setting your own hours and fitting work around other commitments can lead to an improved quality of life.
Independence – You’ve got the freedom to trial new ideas, focusing on what you enjoy doing most.
Location – Self-employment cuts out the inconvenience of office politics, company hierarchies and sometimes, the expensive, stressful daily commute.
Salary – Your earning potential is much higher, while reaping the rewards of your hard work is very satisfying.
Tax Breaks – As a self employed worker, your income is subject to lower Tax and National insurance brackets, meaning that self employment is often an attractive option.
Disadvantages of being self employed
Benefits – You won’t get sick pay, holiday pay or any other employee benefits. You may also feel isolated from colleagues and customers.
Responsibility – You’re in charge of your tax affairs, pension and National Insurance. You’ve got nobody to manage you either, nor motivate you during the difficult times.
Risk – One of the most significant disadvantages of self employment is that you may face a personal legal liability if you make a mistake or a client is not satisfied.
Where do we come in?
We have combined the benefits of self employment and employment into our Contractor Employment + package.
Contractor Employment Plus is for anyone working on a temporary basis, even those who cannot, or have been told they are not able to, work as “self employed”.
The service has already helped thousands of workers to retain the flexibility associated with contracting, but with all the benefits of a full time worker, with things such as:
- Portable solution that can be taken from contract to contract – meaning it can make it easier for a contractor to take out a mortgage.
- All administration such as invoicing, payroll and cash collection taken care of
- Full insurance – no risk!
- Statutory entitlements such as SSP, SPP and SMP
- Private Healthcare and Discounts Package